02/23/1994 09:15 AM Senate FIN

  CSHJR 36  Urging the federal Department of Health and Human                  
  (HES)     Services to   repeal the "100-hour  rule" relating                 
                                                                               
                                                                               
            to employment  of certain  persons receiving  AFDC                 
            and  to  replace it  with  a regulation  that will                 
            serve  as  an  incentive for  AFDC  recipients  to                 
            accept employment of more than 100 hours a month.                  
                                                                               
            Raymond  Goad,  aide   to  Representative   Brice,                 
            sponsor  of  HJR  36,  spoke  in  support  of  the                 
            resolution.  Elmer  Lindstrom, Special  Assistant,                 
            Department of  Health & Social  Services attempted                 
            to answer Co-chair Frank's  question regarding the                 
            "100 hour rule."   Senator Sharp asked  a question                 
            regarding Medicaid eligibility. CSHJR  36(HES) was                 
            REPORTED OUT  of committee with a "do  pass" and a                 
            zero fiscal note  for the  Department of Health  &                 
            Social Services.                                                   
                                                                               
  CS FOR HOUSE JOINT RESOLUTION NO. 36(HES):                                   
                                                                               
       Urging  the  federal  Department  of  Health and  Human                 
       Services to   repeal  the "100-hour  rule" relating  to                 
       employment  of certain  persons  receiving AFDC  and to                 
       replace  it with  a regulation  that will  serve as  an                 
       incentive for AFDC  recipients to accept  employment of                 
       more than 100 hours a month.                                            
                                                                               
  Co-chair  Pearce  announced  that  HJR  36  was  before  the                 
  committee that repealed  the "100  hour rule"  for the  AFDC                 
  program.  She  invited Raymond Goad, aide  to Representative                 
  Brice  to come  to the  table.   She  also  noted that  Ella                 
                                                                               
                                                                               
  Fitzgerald, Public  Assistant Program Manager I, Division of                 
  Medical Assistance, Department of Health &  Social Services,                 
  was in the audience to answer questions.                                     
                                                                               
  RAYMOND GOAD said  that the DH&SS had  developed regulations                 
  relating  to  the aid  to  families with  dependent children                 
  unemployed parent program.  This set out the number of hours                 
  a  parent  could  work without  losing  eligibility  for the                 
  program.  The threshold was set at 100 hours per month.   If                 
  a  job  was exceeded  by 100  hours  per month,  that family                 
  become ineligible for  AFDC and Medicaid even  if employment                 
  earnings were less than the amount of  the AFDC grant.  This                 
  discouraged people  that want to work from  taking full time                 
  employment.  Many families stay on  AFDC because a job would                 
  not support them or provide medical  benefits.  It meant the                 
  state incurred increased cost to the program.  Repealing the                 
  "100 hour  rule" would  enable people  to accept  employment                 
  that exceeded 100 hours per month that may partially support                 
  them and reduce  the amount of  aid received.  He  mentioned                 
  that  a  working  group  for  President Clinton's  plan  may                 
  include such a recommendation.                                               
                                                                               
  In answer to Senator Jacko, Mr. Goad said the reason for the                 
  joint resolution was because it was a federal regulation and                 
  not in state statute.                                                        
                                                                               
  In answer to Co-chair Frank,  ELMER LINDSTROM explained that                 
  if a person had a job for  less than 100 hours per month, it                 
  was counted as income and a  reduction in their AFDC payment                 
  would occur.   He said he did  not know all the  details but                 
  knew the "100 hour  rule" was a dis-incentive for  people to                 
  take low paying  jobs.  He said it was even more apparent to                 
  him since  he had worked with  the JOBS program.   This only                 
  applied to the two parent family case load.  Governor Hickel                 
  had  already  petitioned the  federal government  to include                 
  this  in the national welfare reform effort.  The resolution                 
  would be timely in that regard.  He said it was supported by                 
  the Public Welfare Association, the National Organization of                 
  Welfare Directors, and also was in one of the welfare reform                 
  proposal in the state.                                                       
                                                                               
  Co-chair  Frank  continued   to  make  comments  and   asked                 
  questions of Mr. Lindstrom.   He said that a  welfare reform                 
  waiver would  be before the  legislation this year  and they                 
  could address those questions.                                               
                                                                               
  In answer to  Senator Sharp,  Mr. Lindstrom said  that if  a                 
  person was eligible  for AFDC, he  or she would be  eligible                 
  for Medicaid.                                                                
                                                                               
  Senator Rieger  MOVED for passage  of HJR 36  from committee                 
  with individual recommendations.   No objection being heard,                 
  it was REPORTED OUT  of committee with a "do  pass" and zero                 
  fiscal  note for the Department of Health & Social Services.                 
                                                                               
                                                                               
  Senators Sharp,  Jacko, Kelly,  Rieger, and Kerttula  signed                 
  "do  pass."     Co-chairs  Pearce   and  Frank  signed   "no                 
  recommendation."                                                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:30 a.m.